Staff Report & All Accompanying Documents/Exhibits For June 22, 2016 Hearing

69 Pages·2016·3.95 MB·English

Hood River County Community Development
Planning, Building Codes, Code Compliance, Economic Development & Veterans’ Services
601 State Street, Hood River OR 97031
JOHN ROBERTS, DIRECTOR
[phone]. [email protected]
STAFF REPORT: Proposed Ordinance Text Amendment
Marijuana Businesses
FILE NUMBERS: P-16-0114 (Marijuana Businesses) & P-15-0215 (STRs)
DATE: Prepared for June 2n2d 2016 Planning Commission Public Hearing
APPUCANT Hood River County Community Development Department
PROCEDURE TYPE: Legislative
REQUESTS: 1) Text amendments to the Hood River County Zoning Ordinance
(HRCZO) Article 53 (Home Occupation) to adopt Marijuana Business
and STR regulations (Files P-16-0114 and P-15-0215 respectively). The
purpose of Marijuana Business regulations are to regulate the time,
place and manner of marijuana businesses and possibly prohibit
production and processing of marijuana in the Rural Residential (RR)
zone. The purpose ofthe Short-Term Rentals (STR) regulations are to
adopt standards for review and management of STRs.
The June 2n2d Public Hearing wilifocus on marijuana businesses (P-iS
0114), and will be continued to July 1th3focused on STRs (P-15-0215).
2) Additional amendments to the HRCZO are necessary and include: i)
amending Article 1, Introductory Provisions, to provide clarity,
consolidate provisions and improve processes, ii) responding to
recent legislation adopted by the Land Conservation and
Development Commission, iii) making needed technical changes in
response to the recent model code update, which modernized the
county’s resource zones (i.e., EFU and Forest zones), iv) decreasing
ambiguities to make the HRCZO easier to implement and administer,
and v) other amendments to create consistency to accomplish the
foregoing.
STAFF CONTACT: John Roberts, Community Development Director
OWNERS & LOCATION: Amendments will regulate marijuana businesses and STRs in all zones
on all non-federal and non-tribal trust properties, outside of
incorporated communities and outside ofthe Columbia River Gorge
National Scenic Area.
Staff Report Marijuana Businesses 1 June 22, 2016 Public Hearing
—
RECOMMENDATION: Accept public testimony on Marijuana Business regulations, advise
1th3
staff of additional changes, and continue Public Hearing to July to
address STRs and remaining proposed amendments.
ATTACHMENT A: “Working Draft”: Findings Applicable Planning Goals and Other
—
Criteria
PUBLIC COMMENTS: Public Comments received as ofJune 14, 2016 Attached
EXHIBITS Proposed Amendments to HRCZO:
• Exhibit A Amendments to Article 53 (Home Occupation) to
-
Address Marijuana Businesses and STRs
• Exhibit B Proposed Updates to Create Consistency with Article
—
53
• Exhibit C Amendments to Article 1 (Consolidation of
—
Introductory Provisions)
• Exhibit D Minor and Technical Changes for the Purpose of
—
Clarity, Improved Process and Better Outcomes
I. PURPOSE
The purpose ofthe June 22 Public Hearing will be to focus on text amendments to regulate
1th3
marijuana businesses (P-16-0114), and will be continued to July focused on STRs (P-is-
0215). The end-goal is to forward a recommendation regarding the proposed amendments to
the Board of County Commissioners (“Board”) for theirAugust meeting.
The planning commission is aware that since amendments to the HRCZO are a “legislative”
2n2d
process they are not the final approval authority. The purpose ofthe June Public Hearing is
to formally review the record and proposed amendments, receive public testimony, and begin
to formulate a recommendation for the Board. It is recognized more than one public hearing
might be necessary to vet marijuana business regulations.
Although the primary scope ofthe amendments focuses on both Marijuana Businesses and
STRs, a variety of other amendments are also being proffered. Primarily, the amendment
process offers an opportunity to consolidate and update Article 1 (Introductory Provisions).
Moreover, in light of recent rulemaking completed by the Department of Land Conservation
and Development some minor and technical changes needed for the purpose of clarity,
improved process and better outcomes are also included. The planning commission will be
made aware of these additional changes at the June 22 Public Hearing. However, similar to
Staff Report Marijuana Businesses 1 June 22, 2016 Public Hearing
—
the STR regulations, it is not intended to discuss these other proposed amendments at the
initial hearing. Staff and the commission will use their discretion to determine when to target to
overview and discuss them (likely at the July 1th3 hearing).
II. EXHIBITS & EDITOR’S NOTES
There are four (4) Exhibits that accompany the staff report (Exhibits A D) and identify all of
—
the proposed changes. Excluding the articles that are proposed to be repealed in entirety, all
the proposed text amendments are shown in trikc trough and bold underline. Also contained
within the Exhibits are//Editor’s notes//identified in italicizedyellow highlighting. The Editor’s
notes are included to provide background, and more detail and particulars on important
proposed changes to the HRCZO. The Editor’s notes identify what changes to the HRCZO
content staff considers substantial and worthy of more in-depth discussion or explanation. The
notes are strategically placed to avoid unnecessary content and cross referencing in the staff
report and are intended to help better organize issues and guide discussions.
III. SUMMARY OF IMPORTANT DATES & PROCESS Marijuana Businesses
—
As mentioned, theJune 22’ Public Hearing willfocus on Marijuana Businesses, notSTRs
• 1998— Ballot Measure 67, as amended (Oregon Medical Marijuana Act)
• November 4, 2014 Measure 91 passes.
-
• June 30, 2015 HB 3400 becomes effective. The bill makes numerous amendments to
—
Measure 91 and enables land use regulations to be adopted by local jurisdictions.
• July 20, 2015 Discussion with Board regarding HB 3400, local control and sales tax;
—
consensus was to take a ‘wait and see’ approach regarding regulation of marijuana
businesses.
• September 10, 2015 Community Conversation forum on Marijuana hosted in Odell by
-
the Hood River County Prevention Department.
• December 28, 2015 Planning staff meets with Columbia Gorge Cannabis Growers
—
Association to discuss local permitting process and issues.
• January 4, 2016 OLCC starts accepting applications for production, processing,
-
wholesaling and retailing of marijuana.
• February 16, 2016 County staff (i.e., county prevention and planning departments)
-
make the Board aware of some trends and significant statewide, regional or local issues.
Staff Report Marijuana Businesses 2 June 22, 2016 Public Hearing
—
Staff requests Board initiate a legislative amendment to adopt reasonable Time, Place
and Manner (TPM) regulations to apply to marijuana. Additionally, it is requested an
emergency ordinance temporarily prohibiting marijuana production and processing on
Rural Residential (RR) zoned property is warranted and be adopted.
• March 21, 2016— Board set date for public hearing on emergency ordinance to prohibit
marijuana production and processing on RR zoned property.
• April 18, 2016 Board passes an emergency ordinance declaring a 180-day moratorium
—
on marijuana production and processing in the RR zone.
• May 11, 2016 Planning commission conducts work session on Marijuana Businesses.
-
Extensive background information provided (i.e., “Pot Primer”) as well as draft ordinance
concepts presented.
• May 16, 2016 Board and planning commission conduct joint meeting. Some specifics
—
regarding marijuana businesses and production in industrial zones discussed.
• May 18, 2016— Notice and text amendments regarding marijuana business provided to
DLCD.
• June 1, 2016 Written notice mailed to all affected landowners in the RR zone regarding
—
proposed text amendments to HRCZO and proposed prohibition on marijuana business
(adhering to the requirements ofthe Measure 56 notice process).
• June 1 and June 7, 2016— Otis Gardens hosted and conducted tour of production facility
in Odell. Tours were well attended by county staff, planning commissioners and elected
officials.
• June 15, 2016 Per the request of the Prevention Department to raise awareness,
—
participated on a Latino morning call-in radio show (Radio Tierra).
• June 15, 2016 Notification to all partner agencies and parties; notification to view
-
content online and submit feedback.
• June 22, 2016 First evidentiary hearing on draft marijuana business ordinance
—
presented.
• July 13 First evidentiary hearing on draft STR regulations to be presented.
—
• August 18, 2016 Target Board Public Hearing to adopt all regulations.
—
Staff Report Marijuana Businesses 3 June 22, 2016 Public Hearing
—
IV. SUMMARY OF PROPOSED REGULATIONS MARIJAUANA BUSINESSES
-
The proposed text amendments respond to recent changes in State Law. There’s nothing
contained within this report or the proposed amendments that constitute a departure from the
adopted Hood River County Comprehensive Plan or Statewide Planning Goals. The proposed
amendments to the HRCZO will add and amend text to regulate the time, place and manner of
recreational and medical marijuana businesses regulated by the OLCC and OHA. Please read the
full text in ExhibitAfor a complete understanding ofthe proposed amendments.
Summary ofthe proposed regulations:
• The proposed amendments will only apply to lands in unincorporated areas of Hood
River County, excluding federal lands, Tribal lands, and lands located within the
Columbia River Gorge National Scenic Area.
• Does not regulate personal (non-commercial) growing or processing as specified by
State Law, OLCC and OHA regulations.
• Does not regulate the growing of medical marijuana by a medical marijuana cardholder
at the cardholder’s residence (up to six mature plants per cardholder are permitted by
state law).
• Does not regulate the processing of medical cannabinoid products or concentrates by a
medical marijuana cardholder or a designated primary caregiver for a cardholder.
• Does address both medical and recreation marijuana businesses regulated by the OLCC
and OHA.
• Adds definitions of: cannabinoid, marijuana, marijuana business, marijuana processing,
marijuana production / grow (outdoor and indoor), marijuana retailing and marijuana
wholesaling.
• The text amendments are proposed to be included as part of Article 53 (Home
Occupation) to address marijuana production, processing, wholesaling and retailing;
bifurcates different standards for review from the Home Occupation standards.
• The amendments allow for production/growing in resource zones (EFU and Forest);
production and processing in Industrial zones; limits retail to the Commercial zone; and
prohibits commercial production in Residential zones.
• Grandfathers legally established marijuana businesses prior to the adoption of the
regulations.
Staff Report Marijuana Businesses 4 June 22, 2016 Public Hearing
—
Recognizes the alteration, expansion or replacement ofMarijuana Businesses are
-
subject to the new regulations.
• Creates a table / matrix to identify the marijuana uses permitted for each zoning district
and review type:
Prohibits all marijuana businesses regulated by OLCCand OHAfrom Rural Residential
-
(RR) and Residential (R-i) zones;
Prohibits processing on Forestzones;
-
Allows processing on EFU through a Type II review;
-
Prohibits all marijuana businesses in the rural centerzones (i.e., Oak Grove, Mt. Hood
-
and Rockford communities);
Allows marijuana retailing in the Commercial (C-i) zone;
-
Allows production andprocessing on Industrial zoned land; processing requires Type
-
II review; and
Prohibits all marijuana businesses in overlay zones and NationalScenicArea.
-
• Addresses water, lighting, access and fencing through siting standards.
• Provides 80-foot setback for buildings and structures on resources zones (Farm and
Forest zones).
• Requires a charcoal or air filtration system be installed for production in Industrial
zones; establishes similar requirements for retail operations.
• Provides 1,500 foot setbacks from schools, daycares preschools, public park, public
playground, government-owned recreational use, public library, living history museum,
community centers, licensed treatment center, or multifamily dwelling owned by a
public housing authority.
• Provides applicants with a two-year time frame to implement the business they’ve been
approved for, consistent with existing permit timelines for the County Planning
Department.
V. DLCD FEEDBACK
Feedback was solicited feedback from DLCD. Feedback and changes recommended by DLCD to the draft
language were as follows:
Thankyouforsubmitting this PAPA. Looks great but we do have afew recommendations:
1. In Table 7.02 (pg 3), marijuana processing is listed as a Type II use. Smallscale on-farm
processing (1/4 ofproductsprocessedgrown on-site & limitedto 10,000sq.ft. floor area) is
a use listedin ORS215.283(1)(r) and also includes marijuana processing. As you know, sub
Staff Report Marijuana Businesses 5 June 22, 2016 Public Hearing
—
(1) uses are permitted outrightsubject to standards. We recommend making marijuana
processing as described in 215.283(i)(r) a Type I use. There is some inconsistencyon
processing between ORS and the OAR use table which Ihope to clearup in thefuture.
2. Marijuana wholesaling is listedin Table 7.02 and I assume that’s to reflect the OLCCpermit
types. However, wholesaling is normally considered to be afarm use under ORS215.203 and
doesn’tneed to be separately identified. We recommend deleting this use ormodifying it to
only address wholesaling ofproducts grown off-site.
3. Possible typo. F-i, F-2 and EFUzones are crossed out in Section 53.25 but are listed as
conditionallypermitted in the subsequent table.
I lookforwardto anyfurtherdiscussion ofthese items. Greatjob updating your ordinance!
Comment: It is appreciated DLCD took time to review the regulations. The proposed
regulations are being tailored to meet local needs, fit within the existing HRCZO framework,
and “implement” HB 3400. DLCD is proposing to be less restrictive with processing in the
EFU zone, not necessarily outright acknowledging the OLCC permit types in light of the
definition of farm use, and clarify the review use in Article 72 in the HRCZO.
VI. UNDERLYING ASSUMPTIONSTO GUIDE ORDINANCE AMENDMENTS
At the May 1th1 planning commission work session ideas and draft language for regulating
marijuana businesses were brought forward. The language included observations about
technical issues related to the substance, format and organization ofthe HRCZO. Overall, the
concepts presented represented a first step in the process and staff’s recommendation for
preparing new ordinance language. The recommendation presented May was only an
initial draft and has since been revised in response to direction received from the planning
commission and industry representatives. It is anticipated additional issues and
recommendations will emerge at the public hearing.
Regarding the process of developing draft language, the proposed regulations derive in large
part from staff’s research of a range of regulatory models used by otherjurisdictions, both
locally and around the state; interviews and site visits with industry experts; discussions with
other constituents; and consideration of existing HRCZO provisions. Based on this research and
feedback it is evident proposed regulations could provide some degree of certainty and
flexibility to the marijuana industry through application of clear and reasonable land use
standards.
Article 53 Purpose and Home Occupations: The intent is to develop consistent countywide
—
regulations, to the extent reasonable and possible. Ifthe county does not impose regulations of
its own, only the State’s regulations will apply. Staff is proposing reasonable “time, place and
manner” restrictions to address potential health, safety and general community welfare
impacts related to marijuana businesses. The proposed marijuana regulations would create a
new “Marijuana Business” section as part ofthe Article 53— Home Occupations, with the intent
Staff Report Marijuana Businesses 6 June 22, 2016 Public Hearing
—
being to locate all marijuana-specific regulations in this section for purposes of efficiency and
convenience.
Appropriate Zones: Staff proposes amendments to clarify how marijuana businesses authorized
to operate under state law will be treated under the existing HRCZO. The general philosophy is
to direct commercial and industrial marijuana related activity to the appropriate zones.
Status as ‘Farm Crop’: In light of the fact marijuana is a farm crop under state law, and farm
crops are commonly grown in the rural areas, production (growing) fits into existing code in a
number of zones outside ofthe Columbia River Gorge National Scenic Area. Although state law
prevents counties from imposing restrictions on farm uses in Exclusive Farm Use Zones,
applicants seeking to establish a recreational production operation will need approval from the
county in the form of a Land Use Compatibility Statement (LUCS). In addition, the county is
recommending imposing restrictions on production in other zones outside the EFU.
Operational Aspects: In addition to location restrictions, the proposed amendments
recommend imposing restrictions on certain aspects ofthe operation of all marijuana
businesses, including restrictions aimed at curbing the impacts of odor and lighting. It has been
determined that an 80 to 100-foot setback is reasonable (some jurisdiction use 200-feet) and
appropriate based on a comparative study of otherjurisdictions in Oregon (80-feet is proposed
in the EFU zone). The proposed changes also prohibit a marijuana business as a home
occupation due to OLCC’s inability to enforce and seek compliance with their rules for any
business that is located within a residence.
What the HRCZO Cannot Legally Regulate:
• Marijuana businesses in the Cities of Hood River and Cascade Locks.
• Marijuana inside the Columbia River Gorge National Scenic Area that policy is set by
—
the Columbia River Gorge Commission and US Forest Service NSA Office.
• Personal grow, use or possession of marijuana.
• Personal growing, processing or uses of up to four plants per household as specific by
State Law and OLCC regulations.
• Personal growing, processing or use of medical marijuana by a medical marijuana
cardholder at the cardholder’s residence, as allowed by State Law and OHA regulations.
• Personal recreational or medicinal use of marijuana products at a private residence, as
allowed by State Law.
Moratorium & Rural Residential (RR) Properties: At the request of staff, on April 1th8 2016 the
Board enacted a moratorium (Ordinance 331) on marijuana businesses and facilities on RR
zoned properties. The purpose ofthe moratorium was to enable the county to explore and
impose reasonable TPM regulations to address potential health, safety and general community
welfare impacts related to marijuana business activities. Specific reasons why staff requested
the moratorium included:
Staff Report Marijuana Businesses 7 June 22, 2016 Public Hearing
—
• There are approximately 1,687 parcels, or 4,030 acres, zoned RR in the county;
• The average size of the RR zoned properties is 2.39 acres, median size is 2.03 acres;
• There are only 24 RR zoned properties larger than 10 acres;
• The RR zone is more residential in nature and tends to much smaller properties than
EFU;
• There are inherent compatibility issues between marijuana production in the RR zone
and residential uses.
For these reasons, potential impacts to surrounding uses from production / growing marijuana
in the RR zone may be more pronounced than growing marijuana in farm or forest zones.
VII. CONCLUSION
Many months of research and public meetings have been dedicated to the development ofthe
proposed ordinance amendments. As proposed, the amendments will regulate the time, place
and manner of new marijuana businesses on non-federal and non-Tribal Trust lands located
outside of incorporated communities and outside ofthe Columbia River Gorge National Scenic
Area. The proposed amendments will ensure the health, safety and welfare of County
residents; allow farm uses to continue in farm and forest resource zones; industrial uses to
continue in industrial zones; and commercial uses to continue in commercial zones.
VIII. STAFF RECOMMENDATION
Staff concludes that all criteria have been met for this request (See Attachment A). Based on
the findings offact and other relevant information contained within this staff report and Exhibit
A, staff recommends the planning commission:
1) Accept public testimony and deliberate.
2) Direct staff to make additional changes.
3) If applicable, identify issues that need additional research.
4) Continue the public hearing to July 1th3, 2016 to address STRs and Exhibits B, C and D.
5) Approve the proposed amendments at the July 1th3 Public Hearing.
StaffReportandproposedamendmentsare availableforreviewon the CommunityDevelopmentDepartment
website at: http://hrccd.co.hood-river.or.us/(CommunityDevelopmentpage)orhttp://hrccd.co.hood
river.or.us/departments/planning-zoning/(Planning &Zoning Page). The information willbe updateduntilafterthe
finalhearingbythe BoardofCountyCommissioners.
Foradditionalinformation orquestions concerning theproposedamendments, contactJohn Roberts, HoodRiver
CountyPlanning Director, [email protected][phone].
Proposedamendmentsare alsoavailableforrevieworpurchase (at0.25/sheet) atCountyCommunityDevelopmentat
601 StateStreet, HoodRiver, OR97031.
Staff Report Marijuana Businesses 8 June 22, 2016 Public Hearing
—
Attachment A Findings
-
Working Draft
I. APPLICABLE PLANNING GOALS & OTHER CRITERIA
The proposed amendments will not impact the statewide planning goals, county’s
comprehensive plan or policy document. The proposed changes are a legislative amendment
initiated by the Board of County Commissioners (“Board”) and Planning Department.
A. GOAL 1 CITIZEN INVOLVEMENT
—
GOAL: Maintain a citizen involvement program that insures the opportunityfor citizens to be
involvedin all phases ofthe planning process.
POLICIES:
1. Improve and use existing citizen participation programs to insure ongoing citizen
involvement in plan and land use regulation revisions now and after Plan
acknowledgement.
2. Establish, maintain and encourage use ofan ongoing citizen involvement programfor
the County.
STRATEGIES The County shall:
-
1. Encourage public participation in the planning process by continuing support ofexisting
programs. The Planning Commission shall advise the Board ofthe effectiveness ofthese
programs and changes to improve these programs;
2. Improve the availability ofplanning information to citizens and agencies;
3. Establish otherspecialpurpose committees tofacilitate citizen involvement during plan
review update or as otherwise needed;
(* *)
*
FINDING: A special purpose committee (i.e., Citizen Advisory Committee) was not formed to
assist in the proposed amendments. The citizen advisory committee formed to oversee the
amendments and forward a recommendation to the Board was the planning commission. It is
staff’s opinion the make-up and experience of the planning commission made for an ideal
working group of individuals to represent the public interests and provide constructive
feedback. Per the Planning Commission Bylaws Purpose and Responsibilities:
• B.1 “The Planning Commission is designated and serves as the County’s Citizens
-
Advisory Committee (CAC) under Goal 1 ofthe Oregon Land Use Planning Program.”
• B.2 “The Planning Commission shall be responsible for making recommendation to the
-
Board of County Commissioners (“Board”) on matters of planning, plan
implementation, and community development.”
• B.8 “The Planning Commission shall make recommendations to the Board regarding
—
AttachmentA Working Draft I Findings
—